New Players Are Taking over the Global Arms Industry. China Is Not the only One

Why It Matters

Saudi Arabia’s drive for self‑reliance reshapes regional procurement, while the rise of China and Turkey signals a broader redistribution of power in the global arms market.

Key Takeaways

• Saudi aims 50% defense spend domestic by 2030
• Contracts at WDS total $8.8 billion, up $2 billion
• China and Turkey showcase multi‑domain capabilities, challenging traditional leaders
• U.S. firms retain strong presence with proven platforms
• Saudi Supply Chain Zone links local and foreign defense suppliers

Pulse Analysis

The 2026 World Defense Show marked a turning point for the Saudi defense ecosystem. By establishing the Saudi Supply Chain Zone and the Future Defense Lab, the Kingdom is moving from a pure buyer to a collaborative partner that can co‑develop and manufacture advanced systems. This strategic shift aligns with Crown Prince Mohammed bin Salman’s pledge to allocate over 50 % of defense spending to domestic sources by 2030, creating a fertile market for both local firms and foreign investors seeking joint‑venture opportunities.

China and Turkey leveraged the exhibition to announce ambitious multi‑domain portfolios, from quadruped robots and directed‑energy weapons to the TAI Kaan fighter and advanced naval platforms. Their aggressive positioning reflects a broader trend of emerging powers filling capability gaps in the Middle East, where customers demand cost‑effective, integrated solutions. By offering end‑to‑end packages, these nations challenge the traditional dominance of U.S. and European suppliers and compel them to innovate or partner to retain market share.

For the global arms industry, the $8.8 billion in contracts signed at WDS signals robust demand for next‑generation hardware and software. Buyers are increasingly prioritising modular, network‑centric systems that blend manned and unmanned assets, as well as mission‑support and cyber capabilities. Investors and defense contractors should watch the growing emphasis on domestic production, R&D collaboration, and the rise of non‑traditional players, which together will shape procurement strategies and competitive dynamics over the next decade.